98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 8 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) October 31 November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. December 4 Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. December 10 December 30 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the store room. December 31
98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight charge of $248 cash on each case to have the inventory shipped from the point of purchase to their place of business. October 8 The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of these cases were sold on account to three longstanding customers) October 31 November 4 A new batch of 67 cases was purchased at a total cost of $465,650 November 10 5 of the cases purchased on November 4 were returned to the supplier, as they were not of the type nor model ordered. November 30 During the month 60 cases were sold at a price of $10,350 each. A customer, to whom 9 cases were sold during the first business day of November, returned 3 of the cases, as they were of another make and model. December 4 Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900 each; these were subject to a trade discount of 2% each. December 10 December 30 121 cases were sold during December at a unit selling price of $11,085. An actual count of inventory was carried out which revealed that there were 34 cases of the "TOZO T6" brand of merchandise in the store room. December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
LOUD BASE WIRELESS sells a variety of mobile telephone accessories including several brands of Wireless Earbuds Bluetooth Headphones. The earbuds are sold in cases, with each case containing a pair of earbuds. LOUD BASE began the last quarter (October to December) of 2021 with 30 cases of the (TOZO T6) earbuds at a total cost of $187,800. During the quarter the business completed the following transactions relating to the “TOZO T6” earbuds:
Unless otherwise stated, assume that all purchases were on
Required:
A) Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO) method of
Transcribed Image Text:98 cases were purchased at a cost of $6,202 each. In addition, the business paid a freight
charge of $248 cash on each case to have the inventory shipped from the point of
purchase to their place of business.
October 8
The sales for October were 85 cases which yielded total sales revenue of $809,030. (25 of
these cases were sold on account to three longstanding customers)
October 31
November 4
A new batch of 67 cases was purchased at a total cost of $465,650
November 10
5 of the cases purchased on November 4 were returned to the supplier, as they were not of
the type nor model ordered.
November 30
During the month 60 cases were sold at a price of $10,350 each.
A customer, to whom 9 cases were sold during the first business day of November,
returned 3 of the cases, as they were of another make and model.
December 4
Owing to an increased demand, a further 115 cases were purchased at a cost of $7,900
each; these were subject to a trade discount of 2% each.
December 10
December 30
121 cases were sold during December at a unit selling price of $11,085.
An actual count of inventory was carried out which revealed that there were 34 cases of
the "TOZO T6" brand of merchandise in the store room.
December 31
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